Jannat Ara

Crypto Daily Recap: DeFi Exploits, Terraform Labs’ Bankruptcy Strategy, and Germany Seizes 50,000 BTC

Here’s a roundup of today’s key events in the crypto space:

  1. DeFi Protocols Suffer $38.9 Million Loss in January Exploits:
    • Quantstamp, a DeFi security startup, reported that the Web3 ecosystem experienced losses of $38.9 million in January due to various security incidents, including smart contract hacks, key compromises, and scams.
    • The top five affected smart contract protocols were Radiant Capital, Gamma Strategies, Wise Lending, Socket, and Goledo Finance.
  2. Terraform Labs Considers Bankruptcy to Appeal SEC Suit:
    • Terraform Labs, the company behind the now-defunct stablecoin TerraClassicUSD (USTC), is considering filing for Chapter 11 bankruptcy protection to appeal a lawsuit from the Securities and Exchange Commission (SEC).
    • Terraform Labs CEO Chris Amani mentioned that bankruptcy protection might allow the firm to appeal without having to post a substantial bond, aiming to challenge the SEC’s claim that its crypto assets are securities.
  3. German Authorities Seize 50,000 BTC in Copyright Violation Investigation:
    • German state authorities have confiscated approximately 50,000 BTC, valued at over $2.1 billion, as part of an investigation into alleged copyright violations.
    • The seizure is linked to two German and Polish nationals who allegedly used proceeds from pirated material to purchase the Bitcoin. The authorities have not yet made a final decision on the utilization of the seized Bitcoin.

In addition to these developments, it’s worth noting that the United States has reportedly seized a total of 210,429 BTC connected to various crimes, according to data from Glassnode. The ongoing regulatory landscape and law enforcement actions continue to shape the crypto industry.

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